Which of the Following Statements Is Correct Regarding Nonstatistical Sampling

question 71

Multiple Choice

Which of the following statements is correct regarding nonstatistical sampling?

• A)Nonstatistical sampling must use random selection techniques.
• B)The sample size when using nonstatistical sampling methods is generally not comparable to that determined using statistical sampling methods.
• C)Nonstatistical sampling does not use a formal process to mathematically estimate the allowance for sampling risk.
• D)When using nonstatistical sampling,the audit team is not required to select a sample that is representative of the population.

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Definitions:

Closing Price

The final price at which a stock is traded on a given trading day.

Current Yield

The annual income (interest or dividends) earned from an investment, expressed as a percentage of the current price.

Liquidation Payment

The payout received by investors or creditors during the liquidation of a company, prioritizing payments according to seniority of claims.

Preferred Stock

represents ownership in a corporation with a claim on assets and earnings before common stockholders, often paying fixed dividends.